STREAMPLAY STUDIO LIMITED — Capital/Financing Update 2013

Jun 11, 2013

12 June 2013

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COMPANY UPDATE

Gippsland Limited [ASX: GIP, DB: GIX] ("Gippsland" or "the Company”) is pleased to provide an update in relation to its activities.

Abu Dabbab Tantalum Tin Project Financing

As previously announced, a Consortium of Egyptian banks comprised of Bank Audi, Banque Du Caire, Banque Misr and Commercial International Bank was formed to jointly support Tantalum Egypt JSC (“TE JSC”) in raising the required senior debt financing (the “Transaction”) for the development of the initial phase of the Abu Dabbab Tantalum‐Tin‐Feldspar Project (the “Project”).

The Consortium has appointed an Independent Technical Advisor (‘ITA’), Wardell Armstrong International, to assist it in the Transaction. Wardell Armstrong has provided a draft report upon which the Company has had the opportunity to provide comment. Wardell Armstrong will visit site later this month prior to finalising its report. Gippsland’s advisors, El Torgoman Partners & Advisors Ltd are liaising with the banking Consortium in respect of the financing.

Subject to a satisfactory outcome of this high level review, the Consortium intends to proceed to obtaining credit committee approval for the Transaction and to the final negotiation and execution of a definitive term sheet, which the Company expects to contain some conditions precedent that will need to be fulfilled prior to the first drawdown.

Abu Dabbab Alluvial Tin project

The Company has received proceeds of $768,335 from sales of concentrate to the Malaysian Smelting Corporation to date. A further 22.4 tonnes of tin contained in concentrate has either been delivered to the smelter and is awaiting final assay or is in transit. The Company is encouraged by recent increases in the LME tin price which now sits at approximately US$21,000/tonne.

Spiral Plant – Processing of -2mm material

A demountable modular gravity separation plant comprising of rougher and cleaner spiral separators with a nominal treatment capacity of 50 tonnes per hour (tph) of ‐2 mm alluvial material (the “Spiral Plant”) arrived on site in January. The Spiral Plant is intended to treat approximately 30 tph of ‐2 mm dry feed derived from ROM mining and ROM screening operations and to retreat approximately 20 tph of accumulated tailings from the previous operations of the HPC‐30 circuit. Commissioning was completed in late February.

HPC‐30 tailings materials were contaminated by occasional stones entrained by the contractor during movement from the HPC‐30 circuit to stockpile. As previously announced, a wet screening circuit including a DSM screen was installed to counter this problem. The wet screening circuit should be commissioned by the end of the month.

The nominal capacity of the Spiral Plant is 50 tph or 30,000 tonnes per month at around 85% availability. Throughput has now increased to match this nominal capacity. At full capacity, reprocessing HPC tailings through the wet screening circuit is expected to contribute approximately 12,000 tonnes per month to a total feed stock of 30,000 tonnes per month for a period of

130612 ASX ANNOUNCEMENT - Company Update

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approximately three months. Re‐screening of existing stockpiles is expected to contribute a further 6,000 tonnes per month with the balance made up of materials mined from Wadi Mubarak. When treating this mix of feedstock, the average feed grade of combined feedstock is expected to be around 1.4 kg tin per tonne and at 90% recovery, the plant is expected to produce approximately 40 tonnes of tin contained in concentrate per month.

As at 31 May 2013, approximately 70,000 tonnes of ‐2 mm material, representing in excess of 2 months feed material to the Spiral Plant is in stockpile in one form or another.

Processing of -4 /+2 mm Material

It is intended to utilise the HPC circuit to process ‐4/+2 mm material. In the event that tin recoveries and/or HPC treatment capacity is found to be unsatisfactory, an alternative solution involving a small scale jig plant will be evaluated to treat this material. Preliminary data from grade control sampling at Wadi Mubarak suggests that as much as 60 tonnes of tin contained in ROM from this area is contained in this ‐4+2mm size fraction.

Should a circuit to process ‐4+2 mm material begin operation, additional production from this circuit could increase production by between 20 to 25 tonnes of tin in concentrate per month.

Mining at Wadi Mubarak Placer

Grade control pitting on a 20 x 25 metre grid, sample processing by screen size analysis and sampling over the entire Mubarak Placer was completed in the first quarter. Mine planning based on these grade control samples suggest a total resource of approximately 120,000 tonnes of ‐2 mm material in ROM containing an estimated 155 tonnes of tin‐in‐cassiterite. The ‐2 mm size fraction constitutes an average of 43% of ROM by weight.

Sale of Non-Core Asset

As previously announced the Company has recently sold the balance of its holding of shares in listed company, Stellar Resources Limited (ASX: SRZ). Total proceeds were in excess of $1.9 million, after deducting the costs of brokerage. Gippsland retains a production based royalty over the Heemskirk Tin Project that is applied at tin prices in excess of $25,000 per tonne.

These proceeds will be used for costs associated with the Abu Dabbab hard rock project financing, general working capital and to fund the capital cost of the Abu Dabbab Alluvial Tin project.

Yours faithfully Gippsland Limited

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Ian Gandel Chairman

T: +61 8 9340 6000 E: info@gippslandltd.com

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